Information Regarding Tax Lien

What is a Tax Lien?

It must be understood that the sale and purchase of the tax or special assessment lien at a tax lien sale does not, as it might under simple sales and purchase agreements, convey the right of possession, use, improvement, or access to the property. The buyer is issued a tax lien sale certificate of purchase on which he/she is entitled to interest. The lien may be redeemed by the property owner, any person having a legal or equitable claim or by the agent of either party at any time prior to the issuance of a Treasurer’s tax deed. A Treasurer’s tax deed cannot be issued prior to the third anniversary of the tax lien. The certificate holder has the right to pay (endorse) subsequent year’s taxes and lawful charges once they become officially delinquent. If a certificate holder chooses to endorse, the amount will be added to the existing tax lien. Endorsement information will be mailed to all eligible certificate holders in early July.

If the lien remains unredeemed (not cured), the certificate holder may apply for a tax deed. The procedural requirements normally take twelve to fifteen months to accomplish. An extension of the time period may occur when there are complex problems related to the property. Deed applications may be made four calendar months prior to the third anniversary date of the certificate. The deed application fee is currently $1,300. The deed application processing costs are recoverable if the property is redeemed; however, no redemption interest is earned on deed expenses. Prior to issuing a Treasurer’s tax deed, all subsequent taxes, special assessment liens, and current taxes must be paid. El Paso County makes no guarantee for the condition or marketability of any property which is acquired through a Treasurer’s tax deed. Recent statutory changes no longer guarantee that a Treasurer’s Deed will be issued to the original lienholder. All properties must now go through a secondary auction, in an effort to ensure the property owner receives fair compensation if the property is deeded.

WRONGFULLY SOLD LIEN – If a lien is wrongfully sold and the County must pay the certificate holder the redemption interest, the rate will be calculated as set forth in Section 39-12-111, Colorado Revised Statutes.

Bonus Bids

Obtaining a tax lien can sometimes be competitive. If you are bidding against your peers to hold a tax lien, your are offering up a ‘bonus bid’ to hold the lien.

If you offer a bonus bid when bidding on a tax lien, know this is the amount you will pay to obtain the tax lien and this total is not included in your redemption amount.

Bonus bids are non-refundable and we encourage all potential investors to exercise caution when determining their bidding amounts.

Annual Tax Lien Sale

Our Annual Tax Lien Sale has been moved online to Real Auction!

The Online Sales Website will be open and ready for registration starting 9/26/24, 10AM MST.

On this date, interested bidders should proceed to https://elpaso.coloradotaxsale.com/ and click on “Register” in the center of the page to start the process.

Bidders can pay their required 10% deposit & fill out all required forms to participate directly on the dedicated auction site. All certificates will be listed on the site, where detailed research can also be conducted. Bidders will have the opportunity to place their bids several weeks before the closing of the sale.